Bill C-294

55-56 ELIZABETH II

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CHAPTER 16

An Act to amend the Income Tax Act (sports and recreation programs)

[Assented to 22nd June, 2007]

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1. Paragraph 6(1)(b) of the Income Tax Act is amended by adding the following after subparagraph (v):

(v.1) allowances for board and lodging of the taxpayer, to a maximum total of $300 for each month of the year, if

(A) the taxpayer is, in that month, a registered participant with, or member of, a sports team or recreation program of the employer in respect of which membership or participation is restricted to persons under 21 years of age,

(B) the allowance is in respect of the taxpayer’s participation or membership and is not attributable to services of the taxpayer as a coach, instructor trainer, referee, administrator or other similar occupation,

(C) the employer is a registered charity or a non-profit organization described in paragraph 149(1)(l), and

(D) the allowance is reasonably attribut­- able to the cost to the taxpayer of living away from the place where the employee would, but for the employment, ordinarily reside,

2. The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:

117.1 (1) Each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsections 118(2) and 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

3. Sections 1 and 2 apply to taxation years that end after the day on which this Act is assented to.

4. If Bill C-28, introduced in the 1st session of the 39th Parliament and entitled Budget Implementation Act, 2006, No. 2 (in this section referred to as the “other Act”), receives royal assent, then, on the later of the day on which section 19 of the other Act comes into force and the day on which section 2 of this Act comes into force, the portion of subsection 117.1(1) of the Income Tax Act before paragraph (a) is replaced by the following:

117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s) and each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of